ABSTRACT
This chapter introduces the reader to concepts and tools used by environmental economics that can help businesses in their attempts to adopt more sustainable practices. It discusses how economics as a discipline needs to evolve and adapt to the challenges that climate change is imposing in our societies in order to provide responses to said challenges in line with the aims of the 2030 Agenda for Sustainable Development. In that regard, the consideration of social aspects and the promotion of social justice need to become more evident. Through the use of case studies and other examples, the reader will be able to explore economic policy options to address some of the environmental issues that countries face nowadays. These include the decision between taxes, subsidies, and other instruments to internalise externalities (make the polluter pay); options to deal with waste management; how to give a monetary value to environmental goods and services (so they are not ignored in decision-making processes); or the understanding of the trade-offs between international trade and the environment. The reflection over different measures and their pros and cons aim to provide additional tools for businesses to be encouraged to adopt more environmental and socially responsible practices.
